Case Study by

Large capital raise on client’s country home to refurbish their London property

09 November 2018

Key figures:

£10million property to be refinanced

£6.5million loan

£60million property being refurbished

65% loan to value (LTV)

Rate of 2.89% for 18 months

The client:

As the owner of a global aircraft leasing company, the client in question had vast assets in London, Europe and Singapore. As well as this he owns a highly valued car and passenger ferry but, due to the economic climate, this asset that his business owned had been depreciating by around £6million a year for the last couple of years. This meant that his accounts had dipped into the red.

A contact of mine at a private bank put me in touch with this client. They had found that they were unable to help him and his circumstances. Despite this, I referred him to Enness’ London office where I was confident he would receive a solution.

The property:

The client has a family home in Berkshire valued at £10million and an exceptional London Property worth £60million.

What were they looking for?

He was looking to refinance his country home in Berkshire to raise capital to finish the refurbishment of the family’s London home. He was looking for a loan of around £6.5million.

Why was it difficult?

When the numbers are this high, the complications of a case are multiplied. There were a number of factors against the client in this process. He was carrying a significant loss on his heavily leveraged company accounts and only had one year of accounts showing as in the black. He was looking to raise enough for the remaining refurbishment of the London property as it was unfinished.

Add this to his complicated income and asset structure in multiple currencies and Enness had numerous hurdles to overcome.

What was the process?

It was clear that Enness would need to find a lender who would take a pragmatic approach to this case. The lender selected allows for great flexibility when considering a client’s position on a case-by-case basis. Enness encouraged the lender to fully understand the significant loss of funds was on the large company asset rather than a personal asset. It was then possible for the client to be offered thoroughly bespoke terms.

The solution:

A smart negotiation resulted in the client being offered a 65% loan to value on the £10million property at a rate of 2.89% for 18 months with the client pre-funding the interest. This allowed for an ideal amount of capital to be released for the refurbishment of London property and a very healthy rate for repayment.

Important information

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IF YOU’RE CONSIDERING CONSOLIDATING DEBT AGAINST YOUR MAIN HOME, THEN PLEASE THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.